MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  November 03, 2016 (REPORT 44)                                     

NONFAT DRY MILK - CENTRAL AND EAST                                              
                                                                                
CENTRAL: The low/medium heat nonfat dry milk market, in general, 
remains unsettled as prices moved lower in the range. The mostly 
price series indicates steady to fractionally higher price movement. 
Most NDM manufacturing plants are producing seasonal output at levels 
well below plant capacity. Yet, inventories are building, as sales 
are mostly slow. Both Q1-Q2 and current product are being offered in 
markets, leading to inconsistencies in prices as noted by industry 
sources. Manufacturers are receiving numerous inquiries, as some 
market participants see future prices firming on the back end of the 
GDT. High heat nonfat dry milk prices are lower, driven by f.o.b. 
spot transactions and index pricing. Manufacturing channels are 
comfortable with supplies on hand and are able to meet their high 
heat NDM near term customer needs. Spot sales are intermittent. 
EAST: Prices for Eastern low/medium nonfat dry milk are mixed in the 
range and mostly series. Output varies with the level of availability 
of seasonal milk supplies. Low/medium NDM inventories are moderate 
and building. Some sellers are looking to move quantities, in light 
of growing inventories. In other instances, manufacturers report 
having no additional product to sell. Buyers are content in looking 
around for what they consider the most suitable offer. Overall, buyer 
interest is light to moderate. The high heat nonfat dry milk market 
saw prices decline, the result of minimal f.o.b. spot and basing 
price transactions. Accounts are increasing their volumes to match 
the uptick in holiday related baking activity. Wednesday at the CME 
Group, Grade A NDM closed at $0.8900, down $0.0250 from last week. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .8550 - .9800          MOSTLY:   .8800 - .9400               
HIGH HEAT:        1.0200 - 1.0900                                               


1100CT Daniel.Johnson@ams.usda.gov (608)557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin 
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home